The tax-preferential category is applied for commodities exported from Vietnam is as follows:
According to Article 6 of the Decree No. 16/1999/ND-CP dated March 27, 1999, regulations on customs procedures, customs supervision, and customs fees for exports are comprised of:
- Customs declaration- Commercial contract
- Detailed inventory (for non-identical commodities)
- Other documents (for exports under specific conditions or regulations).
According to the Article 8 of the Value-added Tax (VAT) Law, the VAT rate for exports is 0%. According to the Item 2 of Article 11 of Decree No. 54-CP dated August 28, 1993, regulating the implementation of Export and Import Tax Law, and the Supplemented and Amended Export and Import Tax Law, the preferential tax rate is applied to the export and import of goods with the following conditions:
- Goods exported in accordance with trade agreements signed by the government of Vietnam and another country, in which the article on preferential tax is mentioned for specific categories and quantities of exports.
- Exported goods must be produced in Vietnam
-Preferential tax rate is at 70% of the ordinary tax rate in the export tariff.